The Free Press, Mankato, MN

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September 2, 2010

Our View: Horner offers most complete budget view

By Tom Heffernan and Bronson Myers

WASECA — If voters are tired of catch phrases and sound bites on how to solve the state budget deficit, they should check out Independence Party candidate Tom Horner’s plan. So far, it’s the most balanced and reasonable plan and the one with the most detail of any of the gubernatorial candidates.

First, Horner admits there is a deficit. Recent reports that Republican Tom Emmer said there wasn’t a deficit proved to be just more finessing the numbers. Unfortunately, Gov. Tim Pawlenty lent credence to the fallacy by agreeing with Emmer. State finance officials, the ones who work for Pawlenty, have detailed a budget deficit of $5.8 billion.

While DFL candidate Mark Dayton wants to erase about $4 billion of the deficit with higher income taxes on wealthy Minnesotans, his plan would put Minnesota among the highest among states when it comes to tax rates. Emmer hasn’t released a plan, though he said he will begin in pieces sometime soon. Emmer needs to step into the batter’s box on myriad issues very soon if he wants to be a credible candidate.

Horner’s plan deserve serious consideration by voters. He takes a balanced approach to solving the budget deficit — raising some taxes, cutting some spending and delaying some payments. He would lower the sales tax one percentage point to 5.785 percent, and expand it to clothing and other services, thereby raising about $1.4 billion.

Because most of Minnesota’s competing states already tax clothing, any competitive advantage is not lost. It brings us even. It makes a lot of sense to lower the rate and expand the tax to clothing. It has the effect of getting more tax money from wealthier individuals because they buy more things that will be taxable, but it leaves open the choice to buy or not to buy to the individual taxpayer.

Horner would double cigarette taxes and increase alcohol taxes, again, keeping Minnesota fairly competitive with the levels of tax on those items imposed by neighboring states.

Spending cuts include freezing state hiring and cutting programs — in particular, aid to counties. While that may not be a great idea for counties, Horner plans to eliminate state mandates for many local governments that would in turn lower their costs. They would also be able to raise taxes on their own.

Horner would also delay funding to schools but create a fund to help schools pay interest costs they incur from borrowing to make up for state shortfalls. Horner would also cut business taxes and eventually phase out Minnesota’s corporate income tax, something that has been a bipartisan idea in the past.

Dayton’s plan to tax the rich may sound good, but it may be difficult to pass, even among his fellow Democrats. Emmer, as we said before, has no specific plan.

Horner as a candidate deserves voter attention. He’s come out with the most reasonable and balanced plan to solve Minnesota’s biggest budget deficit in history.

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